ChatGPT-maker OpenAI has raised $8.3 billion at a $300 billion valuation, reports The New York Times. The deal is part of OpenAI’s broader strategy to secure $40 billion this year.
The oversubscribed round came months ahead of schedule, per the NYT. OpenAI initially raised $2.5 billion from VC firms in March when it announced its intention to raise $40 billion in a round spearheaded by Softbank. The AI giant had planned to take on an additional $7.5 billion by the end of the year, but beat itself to the punch as investors clamber to get onto its cap table amid impressive growth.
On Thursday, The Information reported OpenAI hit $12 billion in annualized revenue and surpassed 700 million ChatGPT weekly active users. The Times today said that the number is closer to $13 billion, with projections to reach $20 billion by the end of the year. Other tailwinds include the Trump administration’s AI Action Plan and talks with Microsoft that could help the startup reach its goal of becoming a true for-profit company.
The Times reported that Dragoneer Investment Group, an under-the-radar investor, led the round with a startling $2.8 billion check. Many new investors participated in the round, including private equity giants Blackstone and TPG and mutual fund manager T. Rowe Price. Other participants include Altimeter Capital, Andreessen Horowitz, Coatue Management, D1 Capital Partners, Fidelity Management, Founders Fund, Sequoia Capital, Tiger Global, and Thrive Capital.
Some early investors in OpenAI were reportedly dismayed by the smaller allocations they got in the round as the AI behemoth prioritized bringing on new strategic backers.
TechCrunch has reached out to OpenAI for comment.